Interesting article about Oil

wanghong

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) u& v- m& b  V4 G0 u  }Below is an Interesting article I found, which says that.....Do not
7 U! R& t9 U8 t/ H1 O& zexpect much from Crude Oil producers and future is not with the
8 \+ _' o( T/ F- h) [. Bcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
: ?7 D8 F" f. kcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
1 ?6 F% E% F& a; u) hleast $50.00 per barrel. Today, oil price declined by a record amount.

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5 c1 K" X/ E: u  B: ]There are several reasons the price of oil is decreasing in the face
4 t6 Q; p! V/ B; m8 aof so much news. These reasons are:
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1 }; n, G' T. E- ^2 X( {1. New oil has been found in Canada, Montana, North & South Dakota and
3 b- Z, r1 `: {1 g# f5 V; Jin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.


) T4 H6 c0 ~, w6 d2. New natural gas has been found in Pennsylvania and West Virginia.
- R; {9 I7 U9 f4 ~This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
% n' W" s0 u- ~5 ?3 u" w; V, q3 m7 O, y' hbeing used to double their output.

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4. Production of bio-fuels is beginning to reach critical mass. Bio
0 v; j5 H3 L, t, e6 m& K' cfuel is being produced from many plants and algae. The production
) _1 D6 M/ i, [" x% E4 Q) qpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

, H! w6 w" U7 F% h8 G1 @0 _
0 ~$ d  z6 z  k+ l5. Virtually every restaurant in the US and all food processing plants
9 E8 g2 D2 k( r' kare now selling their used oil to bio-diesel producers. Every pork,
4 ]+ M0 h( n% p/ E5 c+ pcattle, turkey and chicken processing plant will soon sell their fat
. Y5 O4 S1 n4 l6 Uto bio-diesel producers. One pork processing plant in Oklahoma is
8 A& w& a9 n: i0 xproducing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
construction around the world at this time. Several hundred more are
5 {9 q0 r2 G9 a- Y8 ]/ P2 Hexpected to be built in the future. Much of the energy they produce
* r7 Z& z6 v" W8 j3 k+ x7 h( ywill replace oil.
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$ p' {& k- z4 F. Y  A/ Q3 Z7. Every company in any form of transportaion business is replacing
7 i. L& B' u: H4 u" ]* J4 ^older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
9 U7 W, D5 F' f1 oequipment.


, H- q; o) ?( H. d$ fAirlines are flying airplanes with bio-fuel. They are finding the bio-
) r: F: v( Z3 {' O( \fuel is cleaner and performs better than jet fuel.


8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
* D+ j1 ]7 ~6 z5 e3 b2 z% xavailable at very little cost or risk. The gas is displacing crude
& V3 n+ Z) A1 l) O9 poil.
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6 _( L" z6 a/ a& B; ?9. Coal is being transformed into a clean burning liquid fuel. The CO2
2 ^  w, X# o& l$ u4 a  pproduced as a byproduct is sold to oil companies for injection into
oil wells.
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% Z* O; @; ]" ?& F10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
* ^3 N9 n/ }3 C2 D+ n0 |0 o/ s! q" rchanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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1 t: @# s) p1 ^6 Z& H4 l% y6 M/ rWith the above scenario, I still believe that there are under
( a, [9 P/ U$ p! ]2 D# c! `* [- _( H/ Xperformed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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- |/ s& _' b6 F! ~0 u! `; O/ MThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only